New York-based Acreage Holdings – whose shareholders just showed approval for a potential Canpy Growth takeover – has unveiled fiscal results for Q1 (i.e. the three months ending March 2019).
Reported revenue for the period was $12.9 million, up 487% compared to the same period in 2018. Pro forma revenue was $33.1 million.
However, the company reported a net loss of $31.2 million, widening heavily on the $4.2m net loss posted in the prior year quarter.
The firm says that it deployed more than $100 million of capital through acquisitions and capital expenditures in the three months.
“I am pleased with the progress we made toward increasing our national footprint and particularly our expansion in the western United States. Our revenues grew by 487% compared to the first quarter of 2018, despite delayed dispensary openings caused by local regulators in both Massachusetts and Ohio,” said Kevin Murphy, Founder, Chairman and Chief Executive Officer of Acreage.
“We do not expect these delays to impact our long-term ability to generate industry-leading returns. Additionally, we expect our arrangement agreement with Canopy Growth will provide us the ability to rapidly accelerate our growth plan as the transaction makes us the most attractive partner in U.S. cannabis.”
So far in the second quarter of the year, Acreage has closed on its acquisition of Form Factory, as well as announcing the acquisition of Deep Roots Medical LLC, a leading vertically integrated operator in Nevada with licenses to open up to seven dispensaries.
Canopy Growth looks likely to acquire all outstanding shares of Acreage assuming approval of shareholders of both companies, at such time the laws of the United States change such that Canopy Growth is permitted to acquire Acreage.Cannabis Business Worldwide